DuPont Decomposition
Why does UNIVCABLES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.0% = 3.8% × 0.70 × 1.93
Latest: FY2025
Profitability
Net Margin
3.8%
5.4% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.78x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.93x
1.88x →1.93x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.8 pp over 3 years. Driven by net margin declining (5.4% → 3.8%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.4% | 0.78 | 1.88 | 7.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 0.60 | 1.87 | 6.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 0.70 | 1.93 | 5.0% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.